Brazil industrial decline and agribusiness growth trends

In June 2026, Brazil experienced a national industrial contraction. Data from the Brazilian Institute of Geography and Statistics (IBGE) indicated that industrial production fell by 1.8% compared to May, marking the second consecutive monthly decline. This downturn was driven by significant drops in sectors such as pharma-chemical products, chemicals, and petroleum derivatives.

By August 2026, the National Confederation of Industry (CNI) reported that manufacturing industry real revenue fell by 1% in the first half of the year. This decline is attributed to high interest rates, rising production costs, and increased competition from imports. Regional industrial performance remains varied: while Rio Grande do Sul recorded a 3.7% production increase in June, Santa Catarina’s manufacturing industry declined by 1.7% during the first semester, heavily impacted by the furniture and automotive sectors.

However, other states reported industrial growth. Mato Grosso saw increases driven by wood products and food manufacturing, while Mato Grosso do Sul recorded a 4.5% industrial increase in the first semester, fueled by agro-industry and biofuels. Goiás also reported 2.9% annual growth in industrial production, led by vehicle manufacturing.

Conversely, the agribusiness sector continues to drive export growth. Paraná’s exports rose 7% year-over-year to US$ 14.3 billion between January and July 2026, led by soybean oil and machinery. Mato Grosso do Sul reported a 12.76% rise in exports through July, totaling US$ 7.21 billion. In Rio Grande do Sul, agribusiness exports grew by 13.1% in July, bolstered by the soybean complex and poultry meat.

Additionally, the real estate market showed activity through the first half of the year. While the Minha Casa, Minha Vida program contracted 349,000 units, Paraná’s sector remains resilient with record sales, and Porto Alegre saw an 18% increase in medium and high-standard property launches.